The federal government has temporarily suspended the General Sales Tax (GST) on electricity generated through solar systems. President Asif Ali Zardari has agreed to review the 16 percent tax imposed on solar users and has referred the matter back to the Federal Tax Ombudsman for further examination. Earlier, all power distribution companies had challenged the tax, which had placed a heavy financial burden on consumers.
The Federal Tax Ombudsman had initially directed tax collection in February, but the government’s recent decision has called for reconsideration. Meanwhile, Lahore Electric Supply Company (LESCO) introduced stricter regulations for net metering projects due to rising cases of non-compliant or substandard solar inverters.
Under the new rules, applicants must provide the inverter’s serial number and manufacturer, which will be recorded in LESCO’s Enterprise Resource Planning (ERP) system. Applications missing this information will be canceled automatically. Submitted serial numbers will be verified during meter installation, and any discrepancies will prevent grid connection, ensuring only certified equipment is used.
Additionally, inverter details will become part of the official record, creating a permanent trail for verification. These measures aim to prevent the use of fake or low-quality inverters and protect the integrity of the net metering system.
Read more: LESCO to Refund Solar Users for Excess Power Generated
